nov6econnotes

nov6econnotes - Structural unemployment Surplus in workers...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Structural unemployment Surplus in workers caused by wage being above equilibrium 1. Minimum wage 2. Unions 3. Efficiency wages – if you give higher wages to your workers, hopefully they’ll be more productive – firms may want to give wages higher than equilibrium wage because workers will be more productive a) worker health – higher wages can afford the worker health care, nutritious food, etc. – healthy worker is a productive worker b) worker turnover – higher wages provide a disincentive to quit. Low worker turnover is good for a firm – hiring is expensive too (costs to advertise, interview, train, etc) c) worker quality – High wages attract high skilled workers d) work effort – high wages encourage worker productivity so workers avoid losing job. 26 – shifts gears to savings and investments (past three chapters on statistics) Chpt 26: Saving, Investment, and the financial system Y = C + I + G + NX Focus on I Investment encourages economic growth
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/31/2010 for the course ECON 1000 at Colorado.

Page1 / 2

nov6econnotes - Structural unemployment Surplus in workers...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online